Nokia HERE mapping service is set to be unloaded from the Finish company’s portfolio. Although the official sale announcement of the mapping unit is expected at the end of May, an impressive number of industry giants have expressed interest in acquiring the service.
Among resounding names such as BMW, Audi or Mercedes Benz, Uber Technologies started its bid for Nokia HERE at a reported 3 billion dollars.
Uber Technologies, although a household name in the industry, plans to take its business to the next level. Becoming a prime logistics company is their goal and in order to achieve it, it needs to lessen on its dependence on Nokia HERE’s main competitor, Google Maps.
In fact, both Apple Inc.’s Maps and Google Maps represent a fierce competition to the announced potential buyers if they also announced their intention. The three mapping services represent the best of the best in terms of data collection and market share. And while Google Maps and Apple Maps are faring quite well, Nokia HERE seems to be at a loss. An acquisition by any of the two competitors would lead to a monopoly that would be ever so hard to break.
That is why all the known bidders so far, including Uber Technologies and German automakers seem to want to get their hands on Nokia HERE. Firstly, HERE is technologically the most advanced digital mapping service. It required incredible financial and technical expertise investment, as well as time, but the result is that it can offer an extensive database of collection data.
For Uber, that is an advantage it cannot afford to lose. At this point the company is dependant on Google Maps, thus it licenses data from Google. If all this data were to be accessible in-house, the services provided by Uber, including its Uber Pool service would fare much better. Add the value that this brings to a fleet of vehicles where the navigation systems are 80 percent powered by digital mapping.
These are some of the reasons why Uber Technologies is looking forward to unloading HERE into its own backyard. It would benefit the company greatly in terms of not relying on Google Maps and expanding its business sector. Taking into account that Uber sealed a deal with Carnegie Mellon University with the purpose of developing autonomous vehicle technology, acquiring Nokia HERE would represent a great asset to its efforts.
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